Lessons of Nafta for Apec

Abstract

Few environmentalists and trade liberalization proponents ask whether it is possible to promote trade liberalization while maintaining or increasing the level of environmental protection. The practice is to keep trade and environ mental agreements separate or to integrate them into one system. To keep them separate contemplates the need for conflict resolution, and integration suggests that conflict avoidance is the correct solution. This article argues that the North American Free Trade Agreement (NAFTA) model provides significant lessons for the Asia Pacific Economic Cooperation (APEC ) forum's attempts to liberalize trade while protecting the environment. APEC seems committed to separate treatment of environmental issues. This study reviews North Amer ica's blend of direct integration and linked but parallel agreements, arguing that whereas some of the balances are not ideal, this approach suggests some solutions to increase APEC's level of environmental protection at the same time that trade is liberalized.